Today's Date:  Friday, June 22, 2012

1. BILATERAL/MULTILATERAL ISSUES

U.S. trade with Korea has increased after FTA has been initiated [Korean: SLK]

http://www.wowtv.co.kr/newscenter/news/view.asp?bcode=T30001000&artid=A201206220026

Summary: It has been found that more than half of the U.S. companies located in LA are considering or planning to increase trade with Korea after FTA has been initiated. The survey was done by MOFAT in LA to U.S. businesses already in business or willing to trade with Korea. According to the survey, more than 46% of the surveyed have responded that they are planning to increase their businesses with us. They are expecting to benefit from lower tariff or no tariff in some cases by FTA.  

2. BIOTECHNOLOGY ISSUES

Drought in the Midwest of the U.S. is leading to price rise of ethanol [Korean, KSH]

http://www.hankyung.com/news/app/newsview.php?aid=2012062080761

Summary: Serious drought has attacked the Midwest area of the U.S. Under the adverse weather, the corn harvest this year was not as successful as before. The percentage of corn harvest that is in a ‘favorable’ condition has fallen 70% compared to last year. As a result, the price of corn has risen 10%. Furthermore, the ethanol market is also elastically reacting to the price change of corn, its main material. Some specialists say that “This might lead to price rise of alternative fuel, such as bioethanol.”

3. GRAIN & OILSEED ISSUES

Active export of ‘Gaba Rice’ of GangJin city to the world [Korean: SLK]

http://www.kwangju.co.kr/read.php3?aid=1340204400470743145

Summary : GABA rice, a functional rice produced in GangJin, is getting competitiveness in international markets. According to GangJin Center for Agriculture, the rice will be exported to Indonesia and China followed by Japan last year. The exported rice in Indonesia will be sold in 27 Lotte supermarkets, one of Korea’s domestic companies. A person from Gangjin said “We were lucky to winning the contest held by organic institution and RDA. It has given us the opportunity to get selected as an appropriate industry to get government support for exportation. We will continue to do our best to facilitate export in US, Canada, Taiwan and Australia as well.”  

4. LIVESTOCK ISSUES

Korean beef suppliers are worried about beef supply increase. [KSH: Korean]

http://www.kyeonggi.com/news/articleView.html?idxno=587040

Summary: A dramatic Korean beef supply increase is expected. One of the two reasons is the cow reduction project which targeted downsizing 100 thousand surplus supplied beef. Since the project launched, 60 thousand cows were already slaughtered and manufactured into suppliable Korean beef. The other reason is the semen supply project which has been taking an effect since last May (2010). As a result, the fertilization period of cows under the semen supply project is similar and it is coming close. These two factors will increase the Korean beef supply in the near future and suppliers are worried about the consequent price fall.

5. OTHER MISCELLANEOUS ISSUES

Increasing cotton exports to the U.S. by 61% benefiting from KORUS FTA[KJH]

http://joongang.joinsmsn.com/article/510/8538510.html?ctg=

Summary: ROK’s exports to the U.S. increased since the implementation of the Korea-U.S. FTA on March 15th . KITA reported that the market share of Korean products imported to the U.S., rose up to 2.89 % in Apr, marking a record-high since the global economic crisis in 2008. KORUS FTA helps bolster Korea’s exports to the U.S. in textile and clothing industries that have been in a slump. Exports of cotton and chemical textile products to the U.S. increased by 61% and 58%, after 11.5% and 14.9% of their tariffs eliminations respectively.